Decommissioning Insight 2019


These four elements of a decommissioning project continue to be the main cost drivers for decommissioning in the UK. As the industry continues to grow and learn, understanding what drives success in decommissioning is essential. The development of key performance indicators (KPIs), particularly in these four main areas, will be vital in enabling the industry to track success and set improvement targets. While KPIs to measure technical success (e.g. days per well decommissioned or days per tonne of material removed) will be required to communicate to decommissioning practitioners, KPIs for commercial success (e.g. costs per well decommissioned or costs per tonne of material removed) will also be required to engage with government, including HM Treasury and other stakeholders. While the Decommissioning Insight data provide a forward look as to how UK operators expect to perform, backward-looking data (actuals) are required to measure true success. With limited historic data, assessing actual performance has proved difficult. However, as more decommissioning work has been completed, the development of KPIs and benchmarks is becoming possible in certain areas of the WBS, particularly relating to well decommissioning. The OGA is now gathering more granular data as part of the Asset Stewardship Survey and creating metrics to support individual conversations with UK operators. While this process is working well, increased sharing of learnings and insight across UK operators and their supply chain is to be encouraged and can only help in the development of a more efficient market. On a global scale, being able to demonstrate success in the UK industry could help to better advertise national capabilities and act as a catalyst for growing international exports.


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